MIRA INFORM REPORT

 

 

Report No. :

333201

Report Date :

25.07.2015

 

IDENTIFICATION DETAILS

 

Name :

SUNRISE ADVISORY (M) SDN. BHD.

 

 

Registered Office :

Unit 8c, Wisma Ypr, 1, Lorong Kapar, Off Jalan Syed Putra, 8th Floor, 58000 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

29.08.2011

 

 

Com. Reg. No.:

958979-W

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Subject is engaged in the consulting in business management, taxation, public relations.

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

Payment Behaviour :

Slow but correct

Litigation :

Clear

 

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

Malaysia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

MALAYSIA - ECONOMIC OVERVIEW

 

Malaysia, a middle-income country, has transformed itself since the 1970s from a producer of raw materials into an emerging multi-sector economy. Under current Prime Minister NAJIB, Malaysia is attempting to achieve high-income status by 2020 and to move farther up the value-added production chain by attracting investments in Islamic finance, high technology industries, biotechnology, and services. NAJIB's Economic Transformation Program (ETP) is a series of projects and policy measures intended to accelerate the country's economic growth. The government has also taken steps to liberalize some services sub-sectors. The NAJIB administration also is continuing efforts to boost domestic demand and reduce the economy's dependence on exports. Nevertheless, exports - particularly of electronics, oil and gas, palm oil and rubber - remain a significant driver of the economy. As an oil and gas exporter, Malaysia has previously profited from higher world energy prices, although the rising cost of domestic gasoline and diesel fuel, combined with sustained budget deficits, has forced Kuala Lumpur to begin to address fiscal shortfalls, through initial reductions in energy and sugar subsidies and the announcement of the 2015 implementation of a 6% goods and services tax. Falling global oil prices in the second half of 2014 have strained government finances, shrunk Malaysia’s current account surplus and put downward pressure on the ringgit. The government is also trying to lessen its dependence on state oil producer Petronas. The oil and gas sector supplied about 29% of government revenue in 2014. Bank Negara Malaysia (central bank) maintains healthy foreign exchange reserves, and a well-developed regulatory regime has limited Malaysia's exposure to riskier financial instruments and the global financial crisis. Nevertheless, Malaysia could be vulnerable to a fall in commodity prices or a general slowdown in global economic activity because exports are a major component of GDP. In order to attract increased investment, NAJIB earlier raised possible revisions to the special economic and social preferences accorded to ethnic Malays under the New Economic Policy of 1970, but retreated in 2013 after he encountered significant opposition from Malay nationalists and other vested interests. In September 2013 NAJIB launched the new Bumiputra Economic Empowerment Program (BEEP), policies that favor and advance the economic condition of ethnic Malays. Malaysia is a member of the 12-nation Trans-Pacific Partnership free trade agreement negotiations and, with the nine other ASEAN members, will form the ASEAN Economic Community in 2015.

 

Source : CIA

 


 

 

EXECUTIVE SUMMARY

 

REGISTRATION NO.

:

958979-W

COMPANY NAME

:

SUNRISE ADVISORY (M) SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

29/08/2011

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

UNIT 8C, WISMA YPR, 1, LORONG KAPAR, OFF JALAN SYED PUTRA, 8TH FLOOR, 58000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

UNIT 8C, WISMA YPR, 1, LORONG KAPAR, OFF JALAN SYED PUTRA, 8TH FLOOR, 58000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

TEL.NO.

:

03-22607677

FAX.NO.

:

03-22737767

CONTACT PERSON

:

SUBHADRA DEVI A/P GUNASAGARAN ( DIRECTOR )

INDUSTRY CODE

:

70201

PRINCIPAL ACTIVITY

:

CONSULTING IN BUSINESS MANAGEMENT, TAXATION, PUBLIC RELATIONS

AUTHORISED CAPITAL

:

MYR 100,000.00 DIVIDED INTO 
ORDINARY SHARE 100,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 100,000.00 DIVIDED INTO 
ORDINARY SHARES 100,000 CASH OF MYR 1.00 EACH.

SALES

:

MYR 566,115 [2013]

NET WORTH

:

MYR 104,099 [2013]

STAFF STRENGTH

:

N/A

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

AVERAGE

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

N/A

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 

HISTORY / BACKGROUND

 

 

The Subject is a private limited company and is allowed to have a minimum of one and a maximum of forty-nine shareholders. As a private limited company, the Subject must have at least two directors. A private limited company is a separate legal entity from its shareholders. As a separate legal entity, the Subject is capable of owning assets, entering into contracts, sue or be sued by other companies. The liabilities of the shareholders are to the extent of the equity they have taken up and the creditors cannot claim on shareholders' personal assets even if the Subject is insolvent. The Subject is governed by the Companies Act, 1965 and the company must file its annual returns, together with its financial statements with the Registrar of Companies.

 

The Subject is principally engaged in the (as a / as an) consulting in business management, taxation, public relations.

 

The Subject is not listed on Bursa Malaysia (Malaysia Stock Exchange).

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

27/06/2014

MYR 100,000.00

MYR 100,000.00

 

The major shareholder(s) of the Subject are shown as follows :


Name

Address

IC/PP/Loc No

Shareholding

(%)

MS. SUBHADRA DEVI A/P GUNASAGARAN +

11A, JALAN ANUGERAH EMPAT, 25/80D, TAMAN SRI MUDA, 40400 SHAH ALAM, SELANGOR, MALAYSIA.

791209-08-5898

60,000.00

60.00

MR. NISHANTHEN NAIR A/L GUNASAGARAN +

11A, JALAN ANUGERAH EMPAT 25/80D, TAMAN SRI MUDA, 40400 SHAH ALAM, SELANGOR, MALAYSIA.

871025-38-5255

40,000.00

40.00

---------------

------

100,000.00

100.00

============

=====

 

+ Also Director

 





DIRECTORS



DIRECTOR 1

 

Name Of Subject

:

MR. NISHANTHEN NAIR A/L GUNASAGARAN

Address

:

11A, JALAN ANUGERAH EMPAT 25/80D, TAMAN SRI MUDA, 40400 SHAH ALAM, SELANGOR, MALAYSIA.

New IC No

:

871025-38-5255

Date of Birth

:

25/10/1987

Nationality

:

MALAYSIAN

Date of Appointment

:

29/08/2011

 

DIRECTOR 2

 

Name Of Subject

:

MS. SUBHADRA DEVI A/P GUNASAGARAN

Address

:

11A, JALAN ANUGERAH EMPAT, 25/80D, TAMAN SRI MUDA, 40400 SHAH ALAM, SELANGOR, MALAYSIA.

New IC No

:

791209-08-5898

Date of Birth

:

09/12/1979

Nationality

:

MALAYSIAN

Date of Appointment

:

29/08/2011



MANAGEMENT

 

 

1)

Name of Subject

:

SUBHADRA DEVI A/P GUNASAGARAN

Position

:

DIRECTOR

 

AUDITOR

 

Auditor

:

CH & ASSOCIATES

Auditor' Address

:

1-1, SUITE B, JALAN 3/109E, JALAN DESA, DESA BUSINESS PARK, TAMAN DESA, OFF JALAN KLANG LAMA, 58100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. DHATCHAYANI A/P RAMANATHAN

New IC No

:

850305-14-6774

Address

:

17, JALAN PESONA 25/117A, KEMUNING PESONA, 40400 SHAH ALAM, SELANGOR, MALAYSIA.

 

BANKING


No Banker found in our databank. 

 

ENCUMBRANCE (S)


No encumbrance was found in our databank at the time of investigation. 

 

LITIGATION CHECK AGAINST SUBJECT


* A check has been conducted in our databank againt the Subject whether the Subject has been involved in any litigation. Our databank consists of 99% of the wound up companies in Malaysia.

No legal action was found in our databank.

No winding up petition was found in our databank.

DEFAULTER CHECK AGAINST SUBJECT


* We have checked through the Subject in our defaulters' database which comprised of debtors that have been blacklisted by our customers and debtors that have been placed or assigned to us for collection.

No blacklisted record & debt collection case was found in our defaulters' databank.

PAYMENT RECORD

 

 

SOURCES OF RAW MATERIALS:

Local

:

N/A

Overseas

:

N/A


The Subject is a service provider. 

The Subject refused to provide any name of trade/service supplier and we are unable to conduct any trade enquiry. However, from financial historical data we conclude that :

OVERALL PAYMENT HABIT

Prompt 0-30 Days

[

]

Good 31-60 Days

[

]

Average 61-90 Days

[

X

]

Fair 91-120 Days

[

]

Poor >120 Days

[

]

 

CLIENTELE

 

Local

:

YES

Percentage

:

100%

Domestic Markets

:

MALAYSIA

Overseas

:

NO

Credit Term

:

N/A

Payment Mode

:

CHEQUES

 

OPERATIONS

 

Services

:

CONSULTING IN BUSINESS MANAGEMENT, TAXATION, PUBLIC RELATIONS

 

Branch

:

NO

Other Information:


The Subject is principally engaged in the (as a / as an) consulting in business management, taxation, public relations. 

The Subject refused to disclose its operation. 


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

60322607677

Current Telephone Number

:

03-22607677

Match

:

YES

Address Provided by Client

:

UNIT 8C 8TH FLOOR WISMA YPR NO.1 LORONG KAPAR, OFF JALAN SYED PUTRA 58000 KUALA LUMPUR WILAYAH PERSEKUTUAN

Current Address

:

UNIT 8C, WISMA YPR, 1, LORONG KAPAR, OFF JALAN SYED PUTRA, 8TH FLOOR, 58000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

Match

:

YES

Latest Financial Accounts

:

YES

 

Other Investigations


We contacted one of the staff from the Subject and he only provided limited information.

She refused to disclose the number of employees and bankers.


FINANCIAL ANALYSIS

 

Profitability

Turnover

:

Increased

[

15.49%

]

Profit/(Loss) Before Tax

:

Decreased

[

(325.07%)

]

Return on Shareholder Funds

:

Unfavourable

[

9.44%

]

Return on Net Assets

:

Unfavourable

[

5.48%

]

The higher turnover could be attributed to the favourable market condition and the Subject could be gaining the market share progressively.The management had succeeded in turning the Subject into a profit making company. The profit could be due to better control of its operating costs and efficiency in utilising its resources. The unfavourable return on shareholders' funds could indicate that the Subject was inefficient in utilising its assets to generate returns.

Working Capital Control

Stock Ratio

:

Nil

[

0 Days

]

Debtor Ratio

:

Unfavourable

[

85 Days

]

Creditors Ratio

:

Unfavourable

[

64 Days

]

As the Subject is a service oriented company, the Subject does not need to keep stocks. The high debtors' ratio could indicate that the Subject was weak in its credit control. However, the Subject could also giving longer credit periods to its customers in order to boost its sales or to capture / retain its market share. The unfavourable creditors' ratio could be due to the Subject taking advantage of the credit granted by its suppliers. However this may affect the goodwill between the Subject and its suppliers and the Subject may inadvertently have to pay more for its future supplies.

Liquidity

Liquid Ratio

:

Favourable

[

2.29 Times

]

Current Ratio

:

Favourable

[

2.29 Times

]

A minimum liquid ratio of 1 should be maintained by the Subject in order to assure its creditors of its ability to meet short term obligations and the Subject was in a good liquidity position. Thus, we believe the Subject is able to meet all its short term obligations as and when they fall due.

Solvency

Interest Cover

:

Acceptable

[

5.28 Times

]

Gearing Ratio

:

Unfavourable

[

1.18 Times

]

The Subject's interest cover was slightly low. If there is no sharp fall in its profit or sudden increase in the interest rates, we believe the Subject is able to generate sufficient income to service its interest and repay the loans. The Subject was highly geared, thus it had a high financial risk. The Subject was dependent on loans to finance its business needs. In times of economic downturn and / or high interest rate, the Subject will become less profitable and competitive than other firms in the same industry, which are lowly geared. This is because the Subject has to service the interest and to repay the loan, which will erode part of its profits. The profits will fluctuate depending on the Subject's turnover and the interest it needs to pay.

Overall Assessment :

The higher turnover had helped to reduce the Subject's losses. The Subject was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the Subject should be able to repay its short term obligations. The Subject had an acceptable interest cover. If there is no sudden sharp increase in interest rate or fall in the Subject's profit, we do believe the Subject is able to generate sufficient cash flow to service its interest payment. The Subject's gearing level was high and its going concern will be in doubt if there is no injection of additional shareholders' funds in times of economic downturn and / or high interest rates.

Overall financial condition of the Subject : FAIR

 

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2011

2012

2013

2014*

2015**

Population ( Million)

28.7

29.3

29.8

30.3

30.5

Gross Domestic Products ( % )

5.1

5.6

5.3

6.0

6.0

Domestic Demand ( % )

8.2

9.4

5.6

6.4

6.2

Private Expenditure ( % )

8.2

8.0

8.6

7.9

6.9

Consumption ( % )

7.1

1.0

5.7

6.5

5.6

Investment ( % )

12.2

11.7

13.3

12.0

10.7

Public Expenditure ( % )

8.4

13.3

4.4

2.3

4.2

Consumption ( % )

16.1

11.3

(1.2)

2.1

3.8

Investment ( % )

(0.3)

15.9

4.2

2.6

4.7

Balance of Trade ( MYR Million )

116,058

106,300

71,298

52,314

-

Government Finance ( MYR Million )

(45,511)

(42,297)

(39,993)

(37,291)

-

Government Finance to GDP / Fiscal Deficit ( % )

(5.4)

(4.5)

(4.0)

(3.5)

(3.0)

Inflation ( % Change in Composite CPI)

3.1

1.6

2.5

3.3

4.0

Unemployment Rate

3.3

3.2

3.0

3.0

3.0

Net International Reserves ( MYR Billion )

415

427

-

417

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

3.50

2.20

-

-

-

Average 3 Months of Non-performing Loans ( % )

14.80

14.70

-

-

-

Average Base Lending Rate ( % )

6.60

6.53

6.53

-

-

Business Loans Disbursed( % )

15.3

32.2

-

-

-

Foreign Investment ( MYR Million )

23,546.1

26,230.4

38,238.0

-

-

Consumer Loans ( % )

-

-

-

-

-

Registration of New Companies ( No. )

45,455

45,441

46,321

-

-

Registration of New Companies ( % )

3.0

(0.0)

1.9

-

-

Liquidation of Companies ( No. )

132,485

17,092

26,430

-

-

Liquidation of Companies ( % )

417.8

(87.1)

54.6

-

-

Registration of New Business ( No. )

284,598

324,761

329,895

-

-

Registration of New Business ( % )

5.0

14.0

2.0

-

-

Business Dissolved ( No. )

20,121

20,380

18,161

-

-

Business Dissolved ( % )

1.9

1.3

(10.9)

-

-

Sales of New Passenger Cars (' 000 Unit )

535.1

552.2

576.7

598.4

610.3

Cellular Phone Subscribers ( Million )

35.3

38.5

43.0

43.8

-

Tourist Arrival ( Million Persons )

24.7

25.0

25.7

28.0

-

Hotel Occupancy Rate ( % )

60.6

62.4

62.6

-

-

Credit Cards Spending ( % )

15.6

12.6

-

-

-

Bad Cheque Offenders (No.)

32,627

26,982

28,876

-

-

Individual Bankruptcy ( No.)

19,167

19,575

21,984

-

-

Individual Bankruptcy ( % )

5.8

2.1

12.3

-

-

 

INDUSTRIES ( % of Growth ):

2011

2012

2013

2014*

2015**

Agriculture

5.8

1.0

2.1

3.8

3.1

Palm Oil

10.8

(0.3)

2.6

6.7

-

Rubber

6.1

(7.9)

(10.1)

(10.4)

-

Forestry & Logging

(7.6)

(4.5)

(7.8)

(4.2)

-

Fishing

2.1

4.3

1.6

2.7

-

Other Agriculture

7.1

6.4

8.2

6.2

-

Industry Non-Performing Loans ( MYR Million )

634.1

-

-

-

-

% of Industry Non-Performing Loans

3.2

-

-

-

-

Mining

(5.4)

1.4

0.9

(0.8)

2.8

Oil & Gas

(1.7)

-

-

-

-

Other Mining

-

-

-

-

-

Industry Non-performing Loans ( MYR Million )

46.5

-

-

-

-

% of Industry Non-performing Loans

0.1

-

-

-

-

Manufacturing #

4.7

4.8

3.4

6.6

5.5

Exported-oriented Industries

4.1

6.5

3.3

5.6

-

Electrical & Electronics

(4.0)

12.7

6.9

13.3

-

Rubber Products

20.7

3.0

11.7

(0.3)

-

Wood Products

(5.1)

8.7

(2.7)

5.1

-

Textiles & Apparel

13.2

(7.1)

(2.6)

11.5

-

Domestic-oriented Industries

10.7

1.7

6.8

9.4

-

Food, Beverages & Tobacco

4.80

2.70

3.60

6.13

6.13

Chemical & Chemical Products

10.0

10.8

5.6

-

-

Plastic Products

3.8

-

-

-

-

Iron & Steel

2.2

(6.6)

5.0

0.1

-

Fabricated Metal Products

21.8

13.8

9.9

2.9

-

Non-metallic Mineral

12.1

2.9

(2.0)

5.4

-

Transport Equipment

12.0

3.4

13.8

22.9

-

Paper & Paper Products

9.5

3.1

1.8

4.7

-

Crude Oil Refineries

9.3

-

-

-

-

Industry Non-Performing Loans ( MYR Million )

6,537.2

-

-

-

-

% of Industry Non-Performing Loans

25.7

-

-

-

-

Construction

4.7

18.6

10.9

12.7

10.7

Industry Non-Performing Loans ( MYR Million )

3,856.9

-

-

-

-

% of Industry Non-Performing Loans

10.2

-

-

-

-

Services

7.1

6.4

5.9

5.9

5.6

Electric, Gas & Water

3.5

4.4

4.2

3.6

3.9

Transport, Storage & Communication

6.50

7.10

7.30

7.50

7.15

Wholesale, Retail, Hotel & Restaurant

5.2

4.7

5.9

6.9

6.5

Finance, Insurance & Real Estate

6.90

9.70

3.70

4.65

4.25

Government Services

12.4

9.4

8.3

6.1

5.6

Other Services

5.1

3.9

5.1

4.8

4.5

Industry Non-Performing Loans ( MYR Million )

6,825.2

-

-

-

-

% of Industry Non-Performing Loans

23.4

-

-

-

-

* Estimate / Preliminary

** Forecast

# Based On Manufacturing Production Index 



INDUSTRY ANALYSIS

 

MSIC CODE

70201 : Business management consultancy services

INDUSTRY :

BUSINESS SERVICES

The services sector is expected to continue playing an important role in driving the Malaysia economy as it will be a major contributor to Malaysia's GDP with accounting for 55.4% share of GDP in 2015. It is also the biggest contributor to total employment which is 59.4% in the first half of 2014.

In 2014, the services sector is expected to grow by 5.9% and accounting for 55.3% of GDP, with wholesale trade, transport and storage benefiting from higher trade-related activities. Meanwhile, activities in retail-trade, accommodation and restaurants as well as communication are expected to increase amid sustained household spending. Nonetheless, higher tourist arrivals, in conjunction with Visit Malaysia Year 2014, will provide support to growth. In 2015, the services sector will spearhead growth by 5.6% with all subsectors recording expansion. Growth will be driven by production-related activities such as wholesale trade, transport and storage and reinforced by an improving external sector.

The wholesale and retail trade as well as accommodation and restaurant subsectors are expected to grow by 7.1% and 5.9% in 2015 (7.7% and 6.1% in 2014) due to strong domestic consumption and higher tourist arrivals following the Malaysia Year of Festivals 2015. Besides, the finance and insurance subsector is expected to sustain growth at 1.4% in 2015 (1.8% in 2014). The finance segment rose only 1.4% during the first half of 2014 due to the slower growth in net interest and fee-based incomes. Furthermore, the insurance segment moderated to 1.8% during the first six months of 2014 following the slower performance of life insurance business.

Moreover, the real estate and business services as well as the transport and storage subsectors is expected to grow by 7.1% and 4.7% in 2015 (7.5% and 5.0% in 2014). The real estate and business services subsectors expanded 8% during the first six months of 2014. During the period, the business services segment recorded 8.9% growth mainly driven by higher demand for professional services, particularly engineering services in the construction sector as well as computer services.

Likewise, during the first half of 2014, the communication subsector grew 10% with the continued increase in the number of cellular phone subscribers as well as higher use of data services. Growth of the subsector is expected to sustain at 9.6% in 2015 (10% in 2014) supported by strong demand for cellular and broadband services, amid attractive promotions by the telecommunication industry players as well as the launch of new smartphones and media tablets.

However, the utilities subsector is expected to grow at a slower pace of 3.6% in 2014 on account of lower electricity consumption in the residential segment following the increase in electricity tariffs in January 2014. The subsector is expected to grow by 3.9% in 2015. Moreover, the other services subsector is expected to grow 4.5% in 2015 (4.8% in 2014) mainly driven by high-quality and affordable healthcare as well as an increase in foreign Muslim patients seeking halal health treatment in Malaysia. Meanwhile, the government services subsector is estimated to grow 5.6% in 2015 (6.1% in 2014) due to the moderate increase in emoluments as well as supplies and services.

Other than that, the implementation of Business Services NKEA (National Key Economic Areas) plays a major role in nurturing innovation and broadening the country's knowledge and skills base by expanding the country's areas of specialization into new, untapped sectors. It is expected to drive the service sector as well as Malaysia's economy to grow. As identified under NKEA, the Entry Point Projects (EPPs) cover maintenance, repair and overhaul (MRO) services, shared services and outsourcing, data centers, green technology, pure-play engineering services, and shipbuilding and ship repair. Through six Entry Point Projects categorized under two key themes of accelerating the growth of differentiated sectors and developing future segments, the NKEA is projected to grow the Business Services sector’s contribution to GNI to RM78.7 billion by 2020 and expected to create 245,000 additional jobs by 2020.

OVERALL INDUSTRY OUTLOOK : Average Growth



CREDIT RISK EVALUATION & RECOMMENDATION

 


Incorporated in 2011, the Subject is a Private Limited company, focusing on consulting in business management, taxation, public relations. The Subject has been in business for less than 5 years and it has slowly been building up contact with its clients while competing in the industry. However, it has yet to enjoy a stable market shares as it need to compete many well established players in the same field. We noted that the issued and paid up capital of the Subject stands at MYR 100,000. Under the control of its directors, we considered that the Subject's business position in the market is much dependent on their abilities. 

Investigation revealed, the Subject should have build up its clientele base and received supports from its regular customers and the Subject's interest lies mostly in the local market. Thus, any adverse changes to the local economy might have a negative impact on the Subject's business performance. Overall, we regard that the Subject's management capability is average. This indicates that the Subject has greater potential to improve its business performance and raising income for the Subject. 

We noted that both the turnover and profits have increased compared to the previous year. The higher profit could be due to increase in turnover and better control over its operating costs. The Subject has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. The Subject is in good liquidity position with its current liabilities well covered by it current assets. Hence, it has sufficient working capital to meet its short term financial obligations. The high gearing ratio clearly implied that the Subject was supported by more debt than equity. Thus, the Subject is exposed to high financial risk. 

The Subject's payment habit is average. With its adequate working capital, the Subject should be able to pay its short term debts. 

The industry shows an upward trend and this trend is very likely to sustain in the near terms. Hence, the Subject is expected to benefit from the favourable outlook of the industry. 

Based on the above condition, we recommend credit be granted to the Subject normally.

 



PROFIT AND LOSS ACCOUNT

 

THE FINANCIAL STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIAN FINANCIAL REPORTING STANDARDS(FRS)

SUNRISE ADVISORY (M) SDN. BHD.

 

Financial Year End

2013-12-31

2012-12-31

Months

12

12

Consolidated Account

Company

Company

Audited Account

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

Financial Type

FULL

FULL

Currency

MYR

MYR

TURNOVER

566,115

490,196

----------------

----------------

Total Turnover

566,115

490,196

----------------

----------------

PROFIT/(LOSS) FROM OPERATIONS

12,885

(5,725)

----------------

----------------

PROFIT/(LOSS) BEFORE TAXATION

12,885

(5,725)

Taxation

(3,061)

-

----------------

----------------

PROFIT/(LOSS) AFTER TAXATION

9,824

(5,725)

----------------

----------------

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

(5,725)

-

----------------

----------------

As restated

(5,725)

-

----------------

----------------

PROFIT AVAILABLE FOR APPROPRIATIONS

4,099

(5,725)

----------------

----------------

RETAINED PROFIT/(LOSS) CARRIED FORWARD

4,099

(5,725)

=============

=============

INTEREST EXPENSE (as per notes to P&L)

Hire purchase

3,011

-

----------------

----------------

3,011

-

=============

-

DEPRECIATION (as per notes to P&L)

18,756

1,619

----------------

----------------

18,756

1,619

=============

=============

 

 

 

 

BALANCE SHEET

 

SUNRISE ADVISORY (M) SDN. BHD.

 

ASSETS EMPLOYED:

FIXED ASSETS

137,834

8,635

----------------

----------------

TOTAL LONG TERM ASSETS

137,834

8,635

Trade debtors

131,599

37,196

Other debtors, deposits & prepayments

113,843

79,643

Cash & bank balances

24,877

27,672

----------------

----------------

TOTAL CURRENT ASSETS

270,319

144,511

----------------

----------------

TOTAL ASSET

408,153

153,146

=============

=============

CURRENT LIABILITIES

Trade creditors

98,948

23,400

Other creditors & accruals

4,333

2,968

Hire purchase & lease creditors

11,953

-

Provision for taxation

2,675

-

----------------

----------------

TOTAL CURRENT LIABILITIES

117,909

26,368

----------------

----------------

NET CURRENT ASSETS/(LIABILITIES)

152,410

118,143

----------------

----------------

TOTAL NET ASSETS

290,244

126,778

=============

=============

SHARE CAPITAL

Ordinary share capital

100,000

100,000

----------------

----------------

TOTAL SHARE CAPITAL

100,000

100,000

Retained profit/(loss) carried forward

4,099

(5,725)

----------------

----------------

TOTAL RESERVES

4,099

(5,725)

----------------

----------------

SHAREHOLDERS' FUNDS/EQUITY

104,099

94,275

Hire purchase creditors

110,387

-

Deferred taxation

386

-

Others

75,372

32,503

----------------

----------------

TOTAL LONG TERM LIABILITIES

186,145

32,503

----------------

----------------

290,244

126,778

=============

=============

 

 

 

 

FINANCIAL RATIO

 

SUNRISE ADVISORY (M) SDN. BHD.

 

TYPES OF FUNDS

Cash

24,877

27,672

Net Liquid Funds

24,877

27,672

Net Liquid Assets

152,410

118,143

Net Current Assets/(Liabilities)

152,410

118,143

Net Tangible Assets

290,244

126,778

Net Monetary Assets

(33,735)

85,640

PROFIT & LOSS ITEMS

Earnings Before Interest & Tax (EBIT)

15,896

(5,725)

Earnings Before Interest, Taxes, Depreciation And Amortization (EBITDA)

34,652

(4,106)

BALANCE SHEET ITEMS

Total Borrowings

122,340

0

Total Liabilities

304,054

58,871

Total Assets

408,153

153,146

Net Assets

290,244

126,778

Net Assets Backing

104,099

94,275

Shareholders' Funds

104,099

94,275

Total Share Capital

100,000

100,000

Total Reserves

4,099

(5,725)

LIQUIDITY (Times)

Cash Ratio

0.21

1.05

Liquid Ratio

2.29

5.48

Current Ratio

2.29

5.48

WORKING CAPITAL CONTROL (Days)

Stock Ratio

0

0

Debtors Ratio

85

28

Creditors Ratio

64

17

SOLVENCY RATIOS (Times)

Gearing Ratio

1.18

0

Liabilities Ratio

2.92

0.62

Times Interest Earned Ratio

5.28

0

Assets Backing Ratio

2.90

1.27

PERFORMANCE RATIO (%)

Operating Profit Margin

2.28

(1.17)

Net Profit Margin

1.74

(1.17)

Return On Net Assets

5.48

(4.52)

Return On Capital Employed

5.26

(4.52)

Return On Shareholders' Funds/Equity

9.44

(6.07)

Dividend Pay Out Ratio (Times)

0

0

NOTES TO ACCOUNTS

Contingent Liabilities

0

0





 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.89

UK Pound

1

Rs.99.10

Euro

1

Rs.70.12

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAS

 

 

Report Prepared by :

TPT

 

               

RATING EXPLANATIONS

 

RATING

STATUS

PROPOSED CREDIT LINE

 

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

 

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

 

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

 

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

 

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

 

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

 

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

Credit not recommended

 

--

NB

New Business

--

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.